Business protection is a way of helping to protect against possible financial losses in the event of the death or critical illness of a business owner or key individual.
There are two main forms of protection: Shareholder / Partnership Protection. This covers the surviving equity holders in a business and provides them with funds to assist them with purchasing the shares of the deceased without having to disrupt cash flow or having to borrow.
Keyperson Protection is designed to help cover the business against the financial loss it would suffer if a key person died or were diagnosed with a critical illness. This can provide funds to the business, giving it time to search for a replacement or perhaps employ someone until a suitable person is found.
Some of these forms of protection rely heavily on the legal structure set up behind, so it’s important to get it right. This is where ProAktive may be able to help, freeing you to do what you do best.